Davenport's Webinar: Red Flags and Regulatory Hits

0:00Connecticut's Banking Commissioner dropped a hammer on John F. Davenport and his firm, Jay Davenport Advisors, revoking their registrations back on. March 18th, that move bars Davenport from any securities license gig in the state until March 18th, 2033. He didn't admit or deny the charges and skipped a planned hearing. Even after regulators hit him with a cease and desist order, Davenport kept pushing his services. About six weeks later, on March 9th, he sent an email under his name, hyping a financial planning webinar, still calling his firm A. Connecticut registered investment advisor, even though that registration lapsed on December 31st, 2025. Regulators flagged some serious red flags like Davenport hiring a pair legal with a past Ponzi scheme conviction who'd done 42 months in. Federal prison and got barred by the SEC. His Norwalk office had weak security too. Unlock cabinets with client files and login notes just sitting out in the open.

1:01Investigators also caught him overstating sub-advisor fees by five basis points to at least four clients. He owned up to it in 2024 testimony, but couldn't explain why and only fix the tax disclosure after they pushed him. He even admitted not understanding how to file amendments or reading his own compliance rules. This stacks on earlier hits, like a two-month finer suspension and $20,000 fine in 2019 for shady commission sharing, plus A. $10,000 insurance fine in 2021 for impersonating clients. With Davenport licensed here since 2007 and a lawyer since 1994, questions linger on whether that webinar crossed the line-stay banking folks aren't saying it. That wraps heart for news today, brought to you with AI. I'm Corey with the story.